Media & Entertainment

Protecting intellectual property rights in the billion-dollar world of virtual gaming

Comment

Image Credits: mtkang (opens in a new window) / Shutterstock (opens in a new window) (Image has been modified)

Brianna Howard

Contributor

Brianna Ricque Howard is a Los Angeles-based associate at global law firm Nixon Peabody LLP. She primarily practices complex commercial litigation and intellectual property litigation and is a member of the firm’s esports task force.

Virtual reality may have found a game-changing partner: esports.

Recently it was announced that Justice League VR: The Complete Experience is making its way from IMAX VR locations to PlayStation VR headsets, enabling video game users to step into the shoes of their favorite superheroes, such as Batman and Wonder Woman. The news comes on the heels of announcements that the publisher of the wildly popular video game Halo will team up with Microsoft to incorporate mixed reality headsets into the game and that Intel will create a competitive VR esports league with the help of ESL and Oculus.

It’s clear that the days of esports being merely a spectator sport are numbered, as soon users won’t just be sitting and watching the story unfold on a computer screen, they’ll be immersed in it. What challenges will this immersion create when it comes to protecting one’s intellectual property rights to the contents of a game and the innovative technologies involved, like VR? Undoubtedly, disputes over ownership of the underlying technology will increase as more players have a hand in the soon-to-be billion-dollar industry.

On the content side, developers will continue to seek protection of their copyright to the games and the underlying concepts regarding how the games are played. The Copyright Office has stated that copyright law does not protect the idea of a game by itself. Once a game has been made public, nothing in copyright law prevents others from developing another game based on similar principles. However, copyright law does protect the expression of ideas, the unique expression of the game’s underlying concepts that make the character and content of the game.

If there is some copying, courts typically look to whether the allegedly infringing work is “based upon” or “substantially similar to” the original work. Generally, third parties are allowed to use the ideas contained in the game so long as they don’t copy the expression of those ideas from the original work — such as the underlying software game code or those creative elements of the game that make up the “look and feel” of the copyrighted work. This will remain the case when the gaming industry incorporates VR, crafting a more complex gaming world for the user.

There’s no doubt the game developer owns the content of the game, but as VR enables the user to interact with the content in a variety of ways, clear-cut ownership may get lost amidst the grey legal areas surrounding the virtual world. The question becomes where does the developer’s right to the software providing the content end and where does the VR provider’s right to the software empowering the user’s experience with such content begin?

 

On the technology side, patents provide the owner with a right to exclude others from making, using, selling, offering to sell and importing patented inventions. Generally, there are two types of patents at issue in terms of VR: (1) “utility” patents protect the way a technology works and (2) “design” patents protect the way an article looks.

Both types of patents are at play when considering the functionality and processes of the game, game features and arena, as well as arcade center features. Several gaming patents have already been filed, one of which is called “Determining Game Skill Factor.” This patent discloses an algorithm evaluating how much of the outcome of a given game depends on skill versus chance.

Patent protection of this sort will be extremely vital in the esports-VR space as the filings of patent applications for VR technology drastically increase. Just last year, more than 30,000 patent applications were filed directed specifically to VR-related technologies. Although patent law does not protect abstract concepts that may be implicated in a virtual gaming universe, filing appropriate patent applications to protect new technology implementations in the space can and should be done.

The legal dangers with this virtual gaming world will be largely rooted in the lack of clarity around intellectual property rights when content and technology come together to produce something new and valuable. Innovators engaged with these new VR technologies will need to negotiate the ownership rights of any future valuable intellectual property that may be created through this partnership.

Considering these legal implications ahead of time can pave the way for a happy marriage between the soon-to-be billion-dollar gaming industry and VR. According to Business Insider, VR headsets alone will grow to a $2.8 billion industry in 2020. Goldman Sachs predicts revenue from all categories of VR, including software, will reach $110 billion by 2020.

VR and esports together could be a hugely successful collaboration. The addition of VR to games, such as Dota 2, has already garnered great attention. VR technology will transform the esports industry, as people will no longer be separated by screens but, rather, will play in a shared virtual space. Reality and computer-generated content will be so tightly integrated that users won’t be able to tell one from the other.

For now, innovators in virtual gaming face substantial uncertainty about the extent to which they can protect their innovations and competitive advantages as they fight to give gamers the best experience.

More TechCrunch

AI-powered tools like OpenAI’s Whisper have enabled many apps to make transcription an integral part of their feature set for personal note-taking, and the space has quickly flourished as a…

Buymeacoffee’s founder has built an AI-powered voice note app

Airtel, India’s second-largest telco, is partnering with Google Cloud to develop and deliver cloud and GenAI solutions to Indian businesses.

Google partners with Airtel to offer cloud and genAI products to Indian businesses

To give AI-focused women academics and others their well-deserved — and overdue — time in the spotlight, TechCrunch has been publishing a series of interviews focused on remarkable women who’ve contributed to…

Women in AI: Rep. Dar’shun Kendrick wants to pass more AI legislation

We took the pulse of emerging fund managers about what it’s been like for them during these post-ZERP, venture-capital-winter years.

A reckoning is coming for emerging venture funds, and that, VCs say, is a good thing

It’s been a busy weekend for union organizing efforts at U.S. Apple stores, with the union at one store voting to authorize a strike, while workers at another store voted…

Workers at a Maryland Apple store authorize strike

Alora Baby is not just aiming to manufacture baby cribs in an environmentally friendly way but is attempting to overhaul the whole lifecycle of a product

Alora Baby aims to push baby gear away from the ‘landfill economy’

Bumble founder and executive chair Whitney Wolfe Herd raised eyebrows this week with her comments about how AI might change the dating experience. During an onstage interview, Bloomberg’s Emily Chang…

Go on, let bots date other bots

Welcome to Week in Review: TechCrunch’s newsletter recapping the week’s biggest news. This week Apple unveiled new iPad models at its Let Loose event, including a new 13-inch display for…

Why Apple’s ‘Crush’ ad is so misguided

The U.K. Safety Institute, the U.K.’s recently established AI safety body, has released a toolset designed to “strengthen AI safety” by making it easier for industry, research organizations and academia…

U.K. agency releases tools to test AI model safety

AI startup Runway’s second annual AI Film Festival showcased movies that incorporated AI tech in some fashion, from backgrounds to animations.

At the AI Film Festival, humanity triumphed over tech

Rachel Coldicutt is the founder of Careful Industries, which researches the social impact technology has on society.

Women in AI: Rachel Coldicutt researches how technology impacts society

SAP Chief Sustainability Officer Sophia Mendelsohn wants to incentivize companies to be green because it’s profitable, not just because it’s right.

SAP’s chief sustainability officer isn’t interested in getting your company to do the right thing

Here’s what one insider said happened in the days leading up to the layoffs.

Tesla’s profitable Supercharger network is in limbo after Musk axed the entire team

StrictlyVC events deliver exclusive insider content from the Silicon Valley & Global VC scene while creating meaningful connections over cocktails and canapés with leading investors, entrepreneurs and executives. And TechCrunch…

Meesho, a leading e-commerce startup in India, has secured $275 million in a new funding round.

Meesho, an Indian social commerce platform with 150M transacting users, raises $275M

Some Indian government websites have allowed scammers to plant advertisements capable of redirecting visitors to online betting platforms. TechCrunch discovered around four dozen “gov.in” website links associated with Indian states,…

Scammers found planting online betting ads on Indian government websites

Around 550 employees across autonomous vehicle company Motional have been laid off, according to information taken from WARN notice filings and sources at the company.  Earlier this week, TechCrunch reported…

Motional cut about 550 employees, around 40%, in recent restructuring, sources say

The company is describing the event as “a chance to demo some ChatGPT and GPT-4 updates.”

OpenAI’s ChatGPT announcement: What we know so far

The deck included some redacted numbers, but there was still enough data to get a good picture.

Pitch Deck Teardown: Cloudsmith’s $15M Series A deck

Unlike ChatGPT, Claude did not become a new App Store hit.

Anthropic’s Claude sees tepid reception on iOS compared with ChatGPT’s debut

Welcome to Startups Weekly — Haje‘s weekly recap of everything you can’t miss from the world of startups. Sign up here to get it in your inbox every Friday. Look,…

Startups Weekly: Trouble in EV land and Peloton is circling the drain

Scarcely five months after its founding, hard tech startup Layup Parts has landed a $9 million round of financing led by Founders Fund to transform composites manufacturing. Lux Capital and Haystack…

Founders Fund leads financing of composites startup Layup Parts

AI startup Anthropic is changing its policies to allow minors to use its generative AI systems — in certain circumstances, at least.  Announced in a post on the company’s official…

Anthropic now lets kids use its AI tech — within limits

Zeekr’s market hype is noteworthy and may indicate that investors see value in the high-quality, low-price offerings of Chinese automakers.

The buzziest EV IPO of the year is a Chinese automaker

Venture capital has been hit hard by souring macroeconomic conditions over the past few years and it’s not yet clear how the market downturn affected VC fund performance. But recent…

VC fund performance is down sharply — but it may have already hit its lowest point

The person who claims to have 49 million Dell customer records told TechCrunch that he brute-forced an online company portal and scraped customer data, including physical addresses, directly from Dell’s…

Threat actor says he scraped 49M Dell customer addresses before the company found out

The social network has announced an updated version of its app that lets you offer feedback about its algorithmic feed so you can better customize it.

Bluesky now lets you personalize main Discover feed using new controls

Microsoft will launch its own mobile game store in July, the company announced at the Bloomberg Technology Summit on Thursday. Xbox president Sarah Bond shared that the company plans to…

Microsoft is launching its mobile game store in July

Smart ring maker Oura is launching two new features focused on heart health, the company announced on Friday. The first claims to help users get an idea of their cardiovascular…

Oura launches two new heart health features

Keeping up with an industry as fast-moving as AI is a tall order. So until an AI can do it for you, here’s a handy roundup of recent stories in the world…

This Week in AI: OpenAI considers allowing AI porn